Analysis On M Company's Auto Finance Leasing Business Development Opportunities And Countermeasers

Since the 21 st century, China's automobile industry has developed rapidly due to strong consumer demand and the automobile production and sales has ranked in the world, while the development of the corresponding automotive financial service in China is relatively backward and the main auto finance product for consumers is the auto loan. Car leasing, as an important component part of auto finance products in Western counties, is still in early-stage in China. M company is just a start-up enterprise and undertakes financial leasing business. Since the company believes that there is great potential for auto finance market, it adjusts the development strategy and turns its core business to auto financial leasing, however, the development of auto financial leasing business is not satisfactory in last two years.This paper is divided in to five parts. The first chapter presents the research background, framework and research methods. In Charter 2, the paper outlines the auto finance's definition, developments and the position in the value chain of auto industry, and then introduces the auto leasing development in Western countries, which illustrates its importance. Chapter 3, the paper demonstrates the potential and opportunity of auto finance leasing in China through the analysis on macroeconomic situation, relevant law and policies, current auto financial market, the advantage of auto leasing etc. Chapter 4, this thesis overviews M company's background, current business, and analyzes the key issues of its auto leasing business development. At the end, the corresponding countermeasures and specific action plans are proposed for M company's auto leasing business development.Based on researches and analysis, this paper believes the M company's auto finance leasing business has good prospect and opportunity, while it should solve the problems such as product design, price, the credit risk control strategy and its brand cognition to form the competitive advantage, then it could promote its auto financial leasing business.